SARB gets new power on reserves

The South African parliament has given central bank governor Tito Mboweni anew lever of monetary policy, giving him the right to change the definitionof what type of money commercial banks must hold as reserves. The SouthAfrican Reserve Bank Amendment Bill allows Mboweni to determine from timeto time what proportion of the notes and coins in banking halls and vaultscan be counted towards the minimum 2.5% of liabilities that must be held innon-interest-bearing cash reserves.